FX.co ★ Gold price challenges important medium-term support

Gold price has moved towards $1,390-$1,400 as expected and is challenging the recent lows at $1,393. Breaking below this level will open the way for a move towards $1,335-$1,300, as price has also broken below important trend line support. Bulls need to act now if they want to save the short-term trend.

Yellow rectangle - double top resistance

Red rectangle - short-term support

Gold price looks vulnerable. The first warning signs came with the double top and rejection. Price has broken the green trend line support. This is another bearish signal. If the red rectangle breaks also, we expect price to move towards $1,335-$1,300 area. Short-term trend is bearish. Bulls need to recover from current levels if they want to avoid a deeper pull back.